Opinion: How Trump Administration's "Pro-Crypto" Stance Failed to Prevent a Market Bloodbath in 2024

A year of broken promises and liquidation cascades

When 2024 began, cryptocurrency markets had reason for optimism. Bitcoin surged to an all-time high of $126,080 in October, seemingly validating the narrative of a Trump rally that would usher digital assets into mainstream finance. Yet as the year winds down, the crypto market faces a sobering reality: approximately $1 trillion in value has vanished, with Bitcoin losing 3.98% and Ethereum declining 5.05% over the 12-month period.

The tariff shock that triggered the collapse

The turning point arrived mid-October when Trump escalated trade tensions. Within 24 hours, the crypto market experienced a staggering $19 billion in liquidations—the largest single-day wipeout on record. What followed was a domino effect: Ethereum plummeted 40% in a month, macro conditions tightened, and high-leverage positions unwound across the industry. Bitcoin’s November collapse below $81,000 marked its worst monthly performance since 2021, a painful reminder that even “pro-crypto” political tailwinds cannot insulate digital assets from broader economic shocks.

Is this a crypto winter or a natural cycle?

Today Bitcoin oscillates around $90,800—still a far cry from October’s euphoria. Market observers remain split. Some warn the sector is entering a new “crypto winter,” citing the accumulated damage and investor caution. Others, including BlackRock CEO Larry Fink and prominent exchange leaders, argue this represents a typical four-year bitcoin cycle correction rather than existential crisis.

Why institutional adoption remains intact despite the volatility

Despite the year-end retreat, institutional capital continues flowing into digital assets. Both Fink and other industry executives emphasize that long-term fund inflows remain steady, signaling confidence in crypto’s gradual transition from the regulatory gray area into the mainstream financial system. The Trump administration’s overall crypto-friendly stance remains intact, even if near-term volatility has proven brutal. This divergence—between institutional conviction and market price action—may ultimately define 2025’s trajectory.